Defining the Loan Officer
Have you ever wondered what a loan officer actually does? What does it take to get that position? What does this position have as responsibilities? Well, you have some questions, and chances are good you are going to find those answers right here.
What is a loan officer?
Basically, this is a person that helps other people or companies apply for a loan or loans. The type of loans applied for will help dictate the type of person necessary for that particular application.
There are at least three main types of loan officers...
– Commercial ones work with helping people obtain business loans,
– Mortgage officers help people apply for loans for a home, real estate, or even refinance a current mortgage,
– Consumer officers work with individuals or companies that desire to obtain loans for things like furniture, a car, or other assets.
What do you need to become a loan officer?
Most people holding these positions are required to have a finance degree in economics, finance, or a like field of study. In addition, the technological age has made knowing computers and how they relate to banking a tremendous asset. Another good asset when it comes to this position is to enjoy selling things to people. Ok, well, even if you enjoy selling to people. You will find it is best to have the ability and confidence necessary to sell to a person or company. Computer classes and math classes are always a good idea!
Do I need one of these to apply for a loan?
Many people need to obtain loans whether for a house, car, business, or even a boat. Most people need help (whether they know it or not) to help them apply for said loans. People applying for large loans should definitely find a qualified loan officer. However, if you are obtaining a microloan, you can generally complete the process yourself if you have the confidence and skill. While you are not always required to obtain this person for your needs, it is highly suggested you always keep yourself protected.
Some loan officers, called loan underwriters, specialize in evaluating a client’s creditworthiness and may conduct a financial analysis or other risk assessment. Other loan officers, referred to as loan collection officers, contact borrowers with delinquent loan accounts to help them find a method of repayment to avoid their defaulting on the loan. If a repayment plan cannot be developed, the loan collection officer initiates collateral liquidation, in which the lender seizes the collateral used to secure the loan—a home or car, for example—and sells it to repay the loan.
According to the Bureau of Labor Statistics "There are currently no specific licensing requirements for loan officers working in banks or credit unions. Training and licensing requirements for loan officers who work in mortgage banks or brokerages vary by State and may include continuing education requirements. As the types of mortgages offered to prospective homebuyers increases, licensing requirements may become more stringent as regulators and lawmakers become more leery of possible predatory lending."
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